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Porter’s 5 Forces
Competitive Rivalry
High – The competition has turned more intense after the entry of foreign
players like Volkswagen and Ford, KIA motors with their changed designs to
cater to Indian market.
There are many competitively priced product launches in recent years and
the time period of these launches is decreasing.
3
Porter’s 5 Forces
Moderate – The threat of new entrants is generally medium because of the brand equity and
capital intensive nature of the business
The Industry is consolidating in India and has seen an exit of certain key players like GM.
Porter’s 5 Forces
High – In a market, like India there is lot of bargaining power available to the customers as
there are varieties of products available in the same range, by different manufacturers.
With global automakers flooding India with new models to capitalize on the growth
opportunity, buyers will be spoilt for choice
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Porter’s 5 Forces
Low - Bargaining power of suppliers is low as most of the auto component manufacturers
are specialized in some segments related to only one client.
There is a Fragmented source of Supply.
Switching costs from one supplier to another supplier is low.
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Porter’s 5 Forces
Threat of Substitutes
Low – The threat from substitutes products continues to be low, with public transportation
being under developed even in cities.
However, with increasing traffic in cities and increasing Metros construction, Public transport
can become a moderate threat soon.
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SWOT ANALYSIS
Strengths
S
Strong brand image
Great Market Position with more than 50% Market Share
Strong Product portfolio and high economies of
Efficient and Extensive Distribution Network and Promotional
Strategies
Strong Parent Backing
Asset lite strategy
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SWOT ANALYSIS
W Weaknesses
Dip in product Quality may impact brand image and sales performance
Inferior Design and Style when compared to compititors
The company’s extensive dependence on Domestic market.
Low International presence compared to other dominant players in the
industry
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SWOT ANALYSIS
O Opportunities
Expansion of automotive manufacturing industry due to different Social
factors
Green cars and Electric cars
Increasing Personal disposable income
Growth Opportunities in Rural and Semi Urban Markets
Government tax schemes and Protectionism
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SWOT ANALYSIS
Threats
T
Increasing Raw material prices
Adverse foreign exchange fluctuations
higher input costs
100% FDI will bring in new
Increasing competition within Industry
Environmental Regulations such as BS-III ban
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EBIDTA
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MARUTI SUPPLIERS
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